This Business of Brownfields

This Business of Brownfields

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Overview

Who is AMEC Regulations All appropriate inquiry Myths vs. reality of brownfield redevelopment Brownfield redevelopment process Alabama’s Brownfield Redevelopment

and Voluntary Clean-up Program Project examples Open discussion (Q/A)

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AMEC plc

Leading supplier of high value consultancy, engineering, and project management services to markets within the world’s energy and industrial process industries

Advises, designs and manages the delivery and support for strategic complex assets such as offshore oil and gas production facilities, metals or mineral mines, and power infrastructure

Ranked 5th largest International Design Firm by ENR magazine Three core divisions: Power & Process, Natural Resources, Environment

& Infrastructure

Since 2004, ranked #1 in our sector on the Dow Jones Sustainability Index

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Environment & Infrastructure Division

• Specialty consultants and engineers - environmental, geotechnical, materials, project management, and specialty water services

• A regionally organized business - a matrix overlay of sector-focused leadership and delivery

• Domestic markets are Canada, US, and UK - global growth predicated on supporting clients as they reach out to new markets

12% Engineering &Surveying37% Environmental

13% Geotechnical

9% Materials

22% ProgramManagement8% Water

Revenue by service type Revenue by sector

11% Energy

35% Federal

17% Ind/Comm

10% Mining

19% Transportation

8% Water

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What is a Brownfield?

Properties that are abandoned or underused because of environmental contamination, or perceived contamination from past industrial or commercial practices.

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Connecting the Dots

Without lifting your

pencil, draw four straight

lines and connect

all of the dots!

Problem solving

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Connecting the Dots Without

lifting your pencil, draw four straight

lines and connect

all of the dots!

Finding the best solution to a client’s problem involving contaminated

property requires us to think outside the box

Problem solving

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Why Redevelop Brownfields?

Alternative to greenfield developmentUses existing infrastructure (cost savings)Generation of needed services

Economic benefits Increased property value and local tax baseGenerates jobs

Improving community health, safety and quality of lifeMitigates public health and safety concerns Improves community imageDeals with environmental justice issues

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Regulations

Federal: RCRA CERCLA/Superfund Brownfield Legislation

State of Alabama: UST Program (primarily petroleum) Solid Waste Program Hazardous Waste Program (RCRA Sites) Brownfield Redevelopment and Voluntary Cleanup

Program Dry Cleaner Trust Fund Program Hazardous Substance Cleanup Fund Chapter 22, Title 30 of the AL Code ADEM Regulations are in Section 335

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All Appropriate Inquiry

“All Appropriate Inquiries,” or due diligence, is the process of evaluating a property for potential environmental contamination and assessing potential liability for any contamination present at the property.

Why? Your lender will require it Provides purchaser with protection against CERCLA

liability where known contamination exists contiguous property owners, bona fide prospective purchasers, or innocent landowners.

How? Phase I and Phase II Environmental Site Assessments -

ASTM D1527-05/ for Phase Is and ASTM E 1903-97 (2002) for Phase IIs

Update required after 180 days

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Goals/Objectives

Reclaim underutilized property to allow beneficial reuse Cost effective evaluation and characterization of environmental issues

associated with past and current land uses of the area targeted for redevelopment

Development of a Conceptual Remediation Plan prior to remediation of soil and groundwater to allow effective promotion of the redevelopment to potential developers

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Goals/Objectives (continued)

The purpose of remediation is to limit risks to human health and the environment

Brownfields premise: manage risks to mitigate pathways of exposure Where complete exposure pathways exists:

Risk-based Clean-up Standards Innovative Remediation Technologies

Where incomplete exposure pathways exists: Institutional ControlsEngineering Controls

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Myth vs. reality of brownfield redevelopment

Myth: Contaminated property is dangerous for re-use.Reality: Risks to human health and the environment can be

managed through proper assessment and development of corrective action measures

Myth: Clean up of contaminated property is too expensive.Reality: Not all contaminated property has to be cleaned for re-

use. (institutional controls and engineered controls)Myth: It’s better not to know if property is contaminated.Reality: Just the opposite. Your limitation of liability as a

Prospective Purchaser is based on what you “know.” The more thorough the assessment the greater your

limitation of liability.Myth: It’s too difficult to work with the regulatory agency.Reality: State and Federal Regulators are committed to assisting

in the process to achieve redevelopment goals.

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Brownfield redevelopment- issues

Time Money

Market Value Assessment Liability

Due Diligence – All Appropriate Inquiry Environmental Legal

Risk Allocation/Price Reduction Remediation Agreements Escrow Agreements Indemnity Agreements Environmental Insurance

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Strategy for success

Regulatory strategy and negotiation throughout the redevelopment process

Determination of future land use plans Remediation

Address complete exposure pathways

Maintain incomplete exposure pathways

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Alabama Brownfield Regulations - Key Provisions

Creates a brownfields/voluntary cleanup program. Establishes risk-based cleanup standards. Establishes an inventory of properties in remediation and those which

have not been cleaned to a residential standard. Imposes restrictions on future land use based on cleanup levels. Limits the liability of anyone completing the program, provided they

did not contribute to the contamination and that they maintain institutional controls.

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VCP Process

Submit a Application Package and non-Refundable Fee Property must not be:

–Listed on the NPL–Under State or Federal Enforcement Action–A TSD Facility

Letter is valid for one year from issuanceVariances are available for eligibilityCan enter program at any point in the re-development phase

Submit Voluntary Property Assessment Plan and Establish Financial Assurance60 day ADEM Review Period

Perform assessment and submit Voluntary Property Assessment Report

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VCP Process

Submit Clean-Up Plan60 day review by ADEM

File Public Notice File “notice to deed” of property restrictions, if applicable Submit Certification of Compliance ADEM Letter of Concurrence - Achieve “release of liability” from ADEM

Purchaser will not be liable to state or 3rd party for costs incurred in the investigation and clean-up of pre-existing release at the property

Site Placed on Voluntary Clean-up Properties Inventory

Atlantic Station and Atlanta Beltline Eastside Trail Overview

Atlantic Steel to Atlantic Station

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Atlantic Steel – Site History

First Steel Mill in Georgia Initially produced cotton bale

ties and barrel hoops from recycled steel

Operated for nearly 100 years (1901 to 1998)

Was the largest employer in Georgia during WWII

Purchased by Ivaco in 1979 (employment ~ 1,400)

Operations ceased in 1998 (employment ~ 200)

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Atlantic Steel – Prior to Redevelopment

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Developers Vision…“Live, Work, Play” Community

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Master Plan

2525

August 2001

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The Environmental Issues

25 areas identified on-site as Potentially Impacted Areas (PIAs) during initial site due diligence

28 additional PIAs identified during site remediation and grading activities

Major impacts included:Petroleum constituentsSolventsMetalsPCBsSlag

Limited groundwater impacts identified

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Remedial Approach – Soil

Risk based remediation of “hot spots” Isolated impacted areas of soil were

excavated and removed from sitePetroleum ~119,000 tonsMetals ~ 46,000 tonsSolvents ~ 1,400 tons

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Remedial Approach – Soil

Engineering control – a permanent engineered barrier to future exposure was designed and constructedTwo feet of soil coverNew structuresConcrete pavementAsphalt pavement

Imported over 250,000 tons of soil at a cost of approximately $2M During site reclamation, concrete building foundations were

demolished, crushed into smaller pieces, and reused as backfill (132,000 cubic yards)

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Remedial Approach – Groundwater

On-site groundwater found to have limited impacts Groundwater flowed funneled to two points on the eastern side of the

site Intercept wells have been installed at the down-gradient

end of site to collect and, if necessary, treat groundwater System limits further migration of contamination off-site

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Remedial Approach – Regulatory Oversight

The remedial plan was approved by the GA EPD (1999) Upon completion of remedial activities, a Certification Report was

submitted to the EPD and the EPD issued a NFA letter (Dec 2001) The engineered barrier (soil, pavement, concrete cover) and the

groundwater intercept system is referred to as a conservation easement and must be preserved

The conservation easement is designed to ensure that any activities on the property are protective of human health and the environment, in perpetuity, regardless of who owns or controls the property

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Other Site Development Challenges

One of the largest permitted projects in the City of Atlanta in the 2000 timeframe

Need for fast track permitting and rezoning Coordination of numerous stakeholders, regulators, etc. (Seller,

Purchaser, EPA, EPD, COA, Community Organizations, etc.) Demolition of existing structures Significant grading activities Design and construction of landscaping on top of parking decks Upgrading existing City of Atlanta infrastructure Requirement to build a bridge over I-75/I-85 Installation of a mile long separated sewer

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Project Development

138 Acres 6M square feet of Class A office space 3,000 to 5,000 residential units 1.5M square feet of retail and entertainment 1,000 hotel rooms in at least 3 hotels

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Project Development – Office, Retail, Residential

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Project Development – Residential

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General Economic Impacts at Build-Out

Approximately 20,000 new jobs $619M in total salaries $30M in property taxes On-site retailers will contribute

$10 million to $20 million a year in Special Interest Local Option Sales Taxes (SPLOST), which helps fund local education and transportation initiatives

Sales taxes will be generated by an estimated $500 million in retail sales on the property

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Key to Success

Early and significant partnership between Atlantic Steel Industries and Jacoby Development, Inc.

Unique approach to project execution: regular meetings held with all parties, including planners, designers, lenders, contractors, and regulators

Project was one of the first to be approved under EPA’s Project XL (eXcellence and Leadership) program - Gave EPA flexibility to approve the project’s multi-modal bridge (cars, buses, pedestrians and bicycles over the interstate) as a Transportation Control Measure (TCM) and national model for smart growth

Partnerships with the Department of Energy, Georgia Environmental Facilities Authority and the Southface Energy Institute allowed continual incorporation of new sustainable and green building technology ideas

Community involvement and support Trust established among all parties fostered predictability of the process and

enthusiastic cooperation once ALL knew common goals could be achieved

Railroad Corridor to Atlanta Beltline

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Components of the Atlanta BeltLine

22-mile transit loop 33 miles of multi-use trails 1300+ acres of new greenspace 20 economic development areas 30,000 jobs 5000+ units of affordable housing 1100+ acres of brownfield cleanup Streetscapes and public art Historic preservation

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The Atlanta BeltLine

Eastside Trail – 10th Street and Monroe Drive South to DeKalb Avenue

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Atlanta BeltLine Environmental Program Status and Timeline

• Preliminary Assessme

nt

2004

• Phase I & II

• CAP

2007

• RLF• Working

groups establishe

d

2009

• RL grant received

• CAP, SAP, QAPP

approved• CA began

2010

• Implement corrective

action2011

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Eastside Trail –Progress Update

Thirty plus acres situated in the 2.5 mile corridor

Soil remediation for 15 of 17 AOCs completed May 2011

Removal and disposal of 500 tons of arsenic impacted soil

Removal and disposal of 37 tons of SVOC impacted soil

Trail construction began on May 6, 2011

14 foot wide pedestrian path Retaining walls Utilities Landscaping Layout of Future Rail corridor Rail Corridor between North Highland Avenue and

Freedom Parkway, November 2009

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Corrective Action Plan (CAP) BeltLine Eastside Trail

Goal: To protect human health and environment, minimize costs, manage

liability through the Georgia Brownfield Program

Components: Confirmation Sampling Soil Remediation Engineering Controls Environmental Covenant Reporting – CSR

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Summary of Environmental Concerns

On-Site Historical use as railroad

Off-Site Leaking USTs Dry cleaners Unpermitted landfills Lumber yards Industrial/ manufacturing

plants Former auto and trolley

maintenance Metal fabricators and

foundries Auto assembly and repair

facilities

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Sampling and Analysis

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Atlanta Beltline Eastside Trail

Soil Remediation Approach

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BeltLine Eastside Trail Remediation

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BeltLine Eastside Trail Soil Barrier Approach

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Takeaways

Significant sampling and analysis has been completed along the 2.5 mile Eastside Trail Over 75 Borings Over 250 Soil Samples and 11 Groundwater Samples Samples typically tested for 127 chemical constituents

The CAP has been approved by US EPA and GA EPD The CAP approach is conservative and protective of human health

and the environment Site specific risk-based approach The CAP innovative and cost effective as it was designed for the

intended reuse of the property Corrective actions will be certified via a Compliance Status Report

(CSR)

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